Solid earnings and indications of ongoing demand were not enough to buoy home builder stocks Thursday, which continued declines that started Wednesday.
SPDR S&P Homebuilders
ETF (ticker: XHB), which tracks builders and related industries, was down 0.9% at the close, while large builders like D.R. Horton (DHI), Lennar (LEN), and PulteGroup (PHM) were down 3.5%, 4.4% and 5.7%, respectively. On a weekly basis, the three builders are down 8.4%, 9.6%, and 10.7%, respectively.
Many of the sector’s stocks soared to new heights over the summer and early fall as the residential real estate market bounced back from a coronavirus-induced lull in early spring. With mortgage rates near historic lows, supply tight, and